USD/JPY Holds Above 160 Post-BOJ Hike; AUD/USD Firms on RBA Pause

USD/JPY maintained its position above the psychologically significant 160 level following the Bank of Japan's latest rate hike, while AUD/USD firmed modestly after the RBA's decision to pause its tightening cycle. The BOJ's rate increase, while anticipated, did little to reverse the yen's persistent weakness, with USD/JPY holding elevated as the wide US-Japan interest rate differential continues to support the pair. The 160 handle remains a critical level to watch, with Japanese authorities potentially on intervention alert should the pair push significantly higher. Meanwhile, AUD/USD benefited from the RBA's steady hand, with the central bank's balanced tone preventing any downside follow-through. EUR/USD and USD/CAD were also in focus as traders positioned ahead of the pivotal FOMC decision. The divergence in central bank policy paths remains the dominant theme, with the Fed's stance under new Chair Warsh set to recalibrate expectations across major pairs. Support for USD/JPY sits near 159.50, while AUD/USD resistance lies at the top of its recent consolidation range.